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Collaborative planning forecasting and replenishment: new solutions needed for mass collaboration

Jan Holmström (Jan Holmström is Senior Research Fellow at the Helsinki University of Technology, Espoo, Finland.)
Kary Främling (Kary Främling is a Researcher, at the Helsinki University of Technology, Espoo, Finland.)
Riikka Kaipia (Riikka Kaipia is a Researcher, all at the Helsinki University of Technology, Espoo, Finland.)
Juha Saranen (Juha Saranen is a Researcher, at the Helsinki University of Technology, Espoo, Finland.)

Supply Chain Management

ISSN: 1359-8546

Article publication date: 1 August 2002

Abstract

The challenge faced by supplier companies in the grocery supply chain for implementing collaborative planning, forecasting and replenishment (CPFR) is how to get the retailer to forecast, especially when it has not been necessary before. In this paper a solution that would allow collaboration on a wide scale is presented. The forecasting approach is called “rank and share” and uses input from the retailer’s existing planning process – the category management process. The benefit of using category management as the basis is that the retailer can scale up collaboration with a large number of suppliers without increasing planning resources. For the supplier the benefit is point of sales forecasts at the time of the assortment decision. To support this collaborative forecasting process there is a need for more robust replenishment solutions, new measures to illustrate benefits, and for a distributed planning architecture and software. Potential solutions for these are also discussed in the paper.

Keywords

Citation

Holmström, J., Främling, K., Kaipia, R. and Saranen, J. (2002), "Collaborative planning forecasting and replenishment: new solutions needed for mass collaboration", Supply Chain Management, Vol. 7 No. 3, pp. 136-145. https://doi.org/10.1108/13598540210436595

Publisher

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MCB UP Ltd

Copyright © 2002, MCB UP Limited